Determine market price of a share, Finance Basics

What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4? 

market price of a share

a

Dividend per share

   

 mce_markernbsp;                                1.20

b

Dividend payout ratio

 

0.4

c

P/E

     

14

d

Earning per share (a/b)

 

 mce_markernbsp;                                3.00

e

Market Price (d x c)

   

 mce_markernbsp;                              42.00

 

Posted Date: 7/23/2012 2:00:42 AM | Location : United States







Related Discussions:- Determine market price of a share, Assignment Help, Ask Question on Determine market price of a share, Get Answer, Expert's Help, Determine market price of a share Discussions

Write discussion on Determine market price of a share
Your posts are moderated
Related Questions
DO YOU HAVE A SAMPLE BALANCE SHEET

Your grandparents put $1,000 into a saving account for you when you were born 30 years ago. This account has been earning interest at a compound rate of 7%. What is its value today

The operating profit (EBIT) of ABC Ltd is Rs. 1,60,000. Its capital structure consists of the following: 10% Debentures Rs. 500000 12% Preference Shares 1

Illustrate in brief about the Investment  Process A  typical  investment  decision  undergoes  a  five  step  procedure which, in turn, forms the foundation of investment pr

Logistics Management - Supply Chain Management The objectives of logistics management are to: Determine the best routes to market; air, rail or road Determine if w

ascascasc

Bird-in-hand Theory Advanced via John Leitner in year 1962 and furthered with Myron Gordon in year 1963. Argues such shareholders are risk averse and prefer specific. Dividend


Functions of Central Bank a) Ensure Economic stability b) Lender to the government c) Printing of currency notes d) Banker to the government e) Lender of last reso

some report about credit bank